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This year will see the biggest increase in the National Living Wage during the last 5 years. That’s an increase of 6.2% from £8.21 to £8.72 for employees over 25.

If you have employees who are paid the current National Minimum Wage (NMW) or National Living Wage (NLW), you are legally required to increase their pay on 1st April 2020.

Have you budgeted for this increase in pay?

The figures below demonstrate the changes in pay rates from April 2019 to April 2020 across the different age categories.

Starting with the 25 plus age range, the increase is from £8.21 to £8.72 per hour; aged between 21-24, the numbers are £7.70 rising to £8.20; between 18-20, it is £6.15 increasing to £6.45; under 18, the difference is less with a rise from £4.35 to £4.55 and finally, apprentices will see an increase from £3.90 to £4.15.

The economic climate in the UK is creating a lot of uncertainty for small businesses at the moment. Bookkeeping services like a cashflow forecast, for example, will help you see clearly how changes in NLW and NMW will affect your cashflow over the next 12 months.

If you’re worried about your cashflow you can always contact Team4 Solutions for some no obligation advice.
Useful resources:

Find the latest NMW & NLW rates here.

What’s the difference between National Living Wage (NLW) and National Minimum Wage (NMW)? The short version: NLW is for those aged 25 and over. NMW is for those aged 16-24. Apprenticeships are separate. Find more information here.

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